SEC v. Gregg Z. Schonhorn, No. 1:16-cr-828, Southern District of New York (Dec. 26, 2019)

 
 
 UNITED STATES OF AMERICA 
 Before the 
 SECURITIES AND EXCHANGE COMMISSION 
 
SECURITIES EXCHANGE ACT OF 1934 
Release No. 82839 / March 9, 2018 
 
ADMINISTRATIVE PROCEEDING 
File No. 3-18395 
 
 
 
In the Matter of 
 
GREGG Z. SCHONHORN,   
 
Respondent. 
 
 
 
 
 
 
ORDER INSTITUTING PUBLIC 
ADMINISTRATIVE PROCEEDINGS 
PURSUANT TO SECTION 15(b) OF THE 
SECURITIES EXCHANGE ACT OF 1934, 
MAKING FINDINGS, AND IMPOSING 
REMEDIAL SANCTIONS 
 
 
 
I. 
 
 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 
public interest that public administrative proceedings be, and hereby are, instituted pursuant to 
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Gregg 
Z.Schonhorn (“Respondent”).   
 
II. 
 
 In anticipation of the institution of these proceedings,  Respondent has submitted an Offer 
of  Settlement (the “Offer”) which  the Commission has  determined to  accept.  Solely for the 
purpose  of  these  proceedings  and  any  other  proceedings  brought  by  or  on  behalf  of  the 
Commission,  or  to  which  the  Commission  is  a  party,  Respondent  admits  the  Commission’s 
jurisdiction  over  him  and  the  subject  matter  of  these  proceedings,  and  the  findings  contained  in 
paragraph III.2 below, and  consents  to  the  entry  of  this  Order  Instituting  Public Administrative 
Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, 
and Imposing Remedial Sanctions (“Order”), as set forth below.    
 
III. 
 
 On the basis of this Order and Respondent’s Offer, the Commission finds that:   
 
1. Gregg Z. Schonhorn, age 44, resides in Short Hills, New Jersey.  From June 2013 to 
December 2016, Schonhorn was a registered representative and vice president in fixed income sales 
at a registered broker-dealer based in Memphis, Tennessee.  

 
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2. On December 20, 2016, Schonhorn pled guilty to a six-count information charging 
him with conspiracy to commit securities fraud, securities fraud, honest services wire fraud, 
conspiracy to commit honest services wire fraud, bank fraud, and conspiracy to obstruct justice, in 
violation of 15 U.S.C. §§ 78j(b) and 78ff, 18 U.S.C. §§ 371, 1343, 1344, 1346, 1349 and 1512(k), 
and 17 CFR § 240.10b-5, before the United States District Court for the Southern District of New 
York, in United States v. Gregg Schonhorn, 1:16-cr-828.   
 
3. The counts of the information to which Schonhorn pled guilty alleged, among other 
things that, from on or about 2014 to 2016, Schonhorn willfully and knowingly committed 
securities fraud by engaging in a scheme with a co-conspirator, who served as a director of the 
New York State Common Retirement Fund (“NYSCRF”), to defraud NYSCRF.  Specifically, the 
information alleged, in relevant part, that Schonhorn paid bribes to his co-conspirator in exchange 
for NYSCRF fixed-income business, and his co-conspirator failed to disclose the existence of 
those bribes or the conflicts of interest inherent therein to the NYSCRF, to which the co-
conspirator owed fiduciary duties.   
 
IV. 
 
 In view of the foregoing, the Commission deems it appropriate and in the public interest to 
impose the sanctions agreed to in Respondent Schonhorn’s Offer.   
 
 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act that 
Respondent Schonhorn be, and hereby is barred from association with any broker, dealer, 
investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally 
recognized statistical rating organization. 
 
 Pursuant to Section 15(b)(6) of the Exchange Act  Respondent Schonhorn be, and hereby is 
barred from participating in any offering of a penny stock, including: acting as a promoter, finder, 
consultant, agent or other person who engages in activities with a broker, dealer or issuer for 
purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the 
purchase or sale of any penny stock. 
 
Any reapplication for association by the Respondent will be subject to the applicable laws 
and regulations governing the reentry process, and reentry may be conditioned upon a number of 
factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 
waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 
as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 
customer, whether or not related to the conduct that served as the basis for the Commission order;  
  

 
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and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 
that served as the basis for the Commission order. 
 
 For the Commission, by its Secretary, pursuant to delegated authority. 
 
 
       Brent J. Fields 
       Secretary 

UNITED STATES OF AMERICA 

 Before the 

 SECURITIES AND EXCHANGE COMMISSION 

 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 82839 / March 9, 2018 

 

ADMINISTRATIVE PROCEEDING 

File No. 3-18395 

 

 

 

In the Matter of 

 

GREGG Z. SCHONHORN,   

 

Respondent. 

 

 

 

 

 

 

ORDER INSTITUTING PUBLIC 

ADMINISTRATIVE PROCEEDINGS 

PURSUANT TO SECTION 15(b) OF THE 

SECURITIES EXCHANGE ACT OF 1934, 

MAKING FINDINGS, AND IMPOSING 

REMEDIAL SANCTIONS 

 

 

 

I. 

 

 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 

public interest that public administrative proceedings be, and hereby are, instituted pursuant to 

Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Gregg 

Z.Schonhorn (“Respondent”).   

 

II. 

 

 In anticipation of the institution of these proceedings, Respondent has submitted an Offer 

of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 

purpose of these proceedings and any other proceedings brought by or on behalf of the 

Commission, or to which the Commission is a party, Respondent admits the Commission’s 

jurisdiction over him and the subject matter of these proceedings, and the findings contained in 

paragraph III.2 below, and consents to the entry of this Order Instituting Public Administrative 

Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, 

and Imposing Remedial Sanctions (“Order”), as set forth below.    

 

III. 

 

 On the basis of this Order and Respondent’s Offer, the Commission finds that:   

 

1. Gregg Z. Schonhorn, age 44, resides in Short Hills, New Jersey.  From June 2013 to 

December 2016, Schonhorn was a registered representative and vice president in fixed income sales 

at a registered broker-dealer based in Memphis, Tennessee.  



 2 

 

2. On December 20, 2016, Schonhorn pled guilty to a six-count information charging 

him with conspiracy to commit securities fraud, securities fraud, honest services wire fraud, 

conspiracy to commit honest services wire fraud, bank fraud, and conspiracy to obstruct justice, in 

violation of 15 U.S.C. §§ 78j(b) and 78ff, 18 U.S.C. §§ 371, 1343, 1344, 1346, 1349 and 1512(k), 

and 17 CFR § 240.10b-5, before the United States District Court for the Southern District of New 

York, in United States v. Gregg Schonhorn, 1:16-cr-828.   

 

3. The counts of the information to which Schonhorn pled guilty alleged, among other 

things that, from on or about 2014 to 2016, Schonhorn willfully and knowingly committed 

securities fraud by engaging in a scheme with a co-conspirator, who served as a director of the 

New York State Common Retirement Fund (“NYSCRF”), to defraud NYSCRF.  Specifically, the 

information alleged, in relevant part, that Schonhorn paid bribes to his co-conspirator in exchange 

for NYSCRF fixed-income business, and his co-conspirator failed to disclose the existence of 

those bribes or the conflicts of interest inherent therein to the NYSCRF, to which the co-

conspirator owed fiduciary duties.   

 

IV. 

 

 In view of the foregoing, the Commission deems it appropriate and in the public interest to 

impose the sanctions agreed to in Respondent Schonhorn’s Offer.   

 

 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act that 

Respondent Schonhorn be, and hereby is barred from association with any broker, dealer, 

investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally 

recognized statistical rating organization. 

 

 Pursuant to Section 15(b)(6) of the Exchange Act  Respondent Schonhorn be, and hereby is 

barred from participating in any offering of a penny stock, including: acting as a promoter, finder, 

consultant, agent or other person who engages in activities with a broker, dealer or issuer for 

purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the 

purchase or sale of any penny stock. 

 

Any reapplication for association by the Respondent will be subject to the applicable laws 

and regulations governing the reentry process, and reentry may be conditioned upon a number of 

factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 

disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 

waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 

as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 

customer, whether or not related to the conduct that served as the basis for the Commission order;  

  



 3 

and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 

that served as the basis for the Commission order. 

 

 For the Commission, by its Secretary, pursuant to delegated authority. 

 

 

       Brent J. Fields 

       Secretary